Updated from 2:36 p.m.

Shares of

Cantel Medical

(CMN)

were among the worst-performing health-related stocks Thursday, falling 41.3% after the company posted third-quarter results that fell below expectations and announced the termination of its distribution agreement with Olympus America.

The medical device maker posted earnings of $3.8 million, or 23 cents a share, on sales of $50.5 million. Analysts surveyed by Thomson First Call were expecting earnings of 26 cents a share on sales of $51.6 million. A year ago the company earned $3.1 million, or 20 cents a share, on sales of $46.9 million.

Cantel said its subsidiary, Carsen Group, would no longer serve as the Canadian distributor of Olympus America's products, effective July 31, 2006. As part of the termination agreement, Olympus will pay Cantel $6 million in cash for Carsen's transfer of customer lists, sales records and certain other assets related to the sale and servicing of Olympus products. Carsen will also release Olympus from restrictions on hiring Carsen personnel. In all, Cantel will receive net proceeds -- after the sale of inventory and collection of receivables, less liabilities, severance costs, continuing lease obligations and other wind-down costs -- of about $15 million. Shares traded down $12.79 to $18.16.

NovaDel Pharma

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rose 11.8% after the company received an approvable letter from the Food and Drug Administration for NitroMist, which is used for relief of an attack or acute prophylaxis of angina pectoris caused by coronary artery disease. The company believes the FDA, which is not requiring any additional studies, will give NitroMist final approval as soon as the company completes its manufacturing process validation commitments. Once the product is approved,

Par Pharmaceuticals

(PRX)

will market, sell and distribute NitroMist in the US and Canada. NovaDel, for its part, will receive milestone payments and royalties on product sales. Shares traded up 14 cents to $1.33.

Shares of

Anadys Pharmaceuticals

(ANDS)

rose 23.8% after the company announced a drug development agreement with

Novartis

(NVS) - Get Novartis AG Sponsored ADR Report

. Novartis and Anadys will co-develop, manufacture and commercialize ANA975 and other oral prodrugs for chronic hepatitis B and hepatitis C infections. Terms of the deal call for Novartis to make an initial license payment of $20 million to Anadys. What's more, Anadys could receive as much as $550 million in regulatory and commercial milestone payments on the successful development and commercialization of ANA975, a treatment for hepatitis B and hepatitis C. Additionally, Anadys will receive $10 million upon the successful investigational new drug submission of ANA975, which is expected during the middle of 2005. Shares of Anadys traded up $1.61 to $8.37.

OraSure Technologies

(OSUR) - Get OraSure Technologies, Inc. Report

rose 4.1% after the company announced an exclusive agreement with

SSL International

in which OraSure will manufacture and supply its cryosurgical wart removal product to SSL, which will distribute the product in Europe, Australia and New Zealand under its Scholl and Dr. Scholl trademarks. Initially, the product will be made available for retail purchase in pharmacies and retail outlets in the United Kingdom, France, German, Spain and Italy - beginning in fall 2005. In early 2006, the product will be marketed and sold in other countries outside of the Americas. As a result of the agreement with SSL, OraSure now expects 2005 earnings of 12 cents to 14 cents a share on sales of $70 million. Analysts are expecting earnings of 10 cents a share on sales of $67.7 million. Shares of OraSure traded up 33 cents to $8.43.

Other health care volume movers included

Elan

(ELN)

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, down $1.14 to $6.85;

Pfizer

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, up 3 cents to $28.20;

Able Laboratories

(ABRX)

, up 30 cents to $4.73;

Cephalon

(CEPH)

, down 69 cents to $39.71;

Biogen Idec

(BIIB) - Get Biogen Inc. Report

, down $1.70 to $38.07;

UnitedHealth Group

(UNH) - Get UnitedHealth Group Incorporated Report

, up $1.15 to $50.38;

Schering-Plough

(SGP)

, up 24 cents to $19.70;

Boston Scientific

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, up 55 cents to $27.85;

Merck

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, up 4 cents to $32.23; and

Amgen

(AMGN) - Get Amgen Inc. Report

, down 30 cents to $62.88.